Frequently Asked Questions
As you consider setting up business or hiring employees in France, here are the answers to some of the basic questions you may have.
We would like to hire an employee in France without necessarily setting up any formal structure there; Is that possible?
As long as your business activities in France will not be of the nature of a permanent establishment, it is possible to register as a non- resident employer with no formal structure in France.
How long does it take to set up a company in France?
Once all necessary documentation is in place, the registration process takes 2-3 weeks, but the time necessary to gather the required information and documentation should not be underestimated! This can take several weeks and sometimes months.
Our Company is considering setting up an entity in France. What is the corporate tax rate?
The corporate tax rate in France is currently 28% for profits up to 500.000€ and 33.33% for profits beyond. These rates will progressively decrease through 2021 when the standard rate on all profits will be 26.5%. .
How long does it take to register as a non-resident employer in France?
The timeline varies from 3-8 weeks, depending on time of year.
If we set up an entity in France will we have to have a local bank account?
If you set up a subsidiary company, you will need to have a bank account in France. If you only open a branch office you do not have to have a local bank account, but having one facilitates business operations.
What is the vacation entitlement in France and does holiday run on a calendar year?
The standard entitlement for paid leave is 25 days. This can vary depending on the industry and on individual seniority. The holiday year runs from June to May. Vacation earned in one year is taken the following year.
What is the standard working week in France?
The standard working week is 35 hours.
What are RTT days?
RTT days or rest days are extra days off to compensate for working time arrangements which exceed 35 hours per week.
What rate of employer contributions should I add on to salaries to establish total salary costs?
Social contributions rates vary according to levels of salary and benefits. An average rate would be 45%.
What percentage of employee contributions comes out of gross pay?
Employee contribution rates vary according to levels of salary and benefits. An average rate would be 23%.
What is a Collective Bargaining Agreement?
A Collective Bargaining Agreement (CBA) is an agreement negotiated at industry level between employer and employee unions and contains rules that in addition to French law govern the conditions of employment within a specific industry.
What benefits are mandatory in France?
Mandatory benefits will depend on the applicable Collective Bargaining Agreement, but health insurance is mandatory in all companies and in most industries there is a mandatory death/disability insurance plan.
Is it true that we have to organize medical checks for our employees?
Yes, all employers in France have to organize regular medical checks for their employees in order to have them declared medically apt to perform their duties.
What is standard maternity leave entitlement in France?
Standard maternity leave is 16 weeks, but this increases for the third child or in the event of multiple births (twins etc.)
When are we obliged to have employee representatives?
When you have had more than 10 employees for a period of 12 months you are obliged to organize elections for the nomination of employee representatives.
What are luncheon vouchers?
Luncheon vouchers are a relatively widespread benefit in France. The employer participates in the cost of vouchers which can be used to buy meals during lunch break. The benefit of the employer contribution is exempt of any taxation or social contributions.